ABM - ABM Industries: A Promising Bolt-On Deal
2024-07-12 16:41:26 ET
Summary
- ABM Industries Incorporated provides various services which appeal to building owners and operators, as the labor-intensive nature makes it a low operating margin business.
- Post-pandemic, revenues have risen amidst inflationary pressure, although that tight labor markets and some pockets of weakness have weighed on margins.
- Despite stagnant earnings and margin pressure, ABM's recent bolt-on deal and potential for margin recovery make it a potentially attractive investment.
In the fall of 2022, I called shares of ABM Industries Incorporated ( ABM ) a clean place. The company was seeing a growth acceleration, although aided by inflationary pressures. Ever since, growth slowed down amidst inflation coming down, tight labor markets and some client groups facing harsher times....
ABM Industries: A Promising Bolt-On Deal